ZuoTi.Pro
Question

Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $360,000 of ind...

Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $360,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period:

Department DLH Loans Processed Direct Costs
Consumer 17,000 500 $ 290,000
Commercial 6,000 400 $ 190,000

If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Consumer Department?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Predetermined overhead rate = 360000/(500+400) = $400 per loan

Total cost for consumer department = Direct costs + overhead

= $290000 + 400*500

= $490,000

0 2
Add a comment
Know the answer?
Add Answer to:
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $360,000 of ind...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $435,750 of ind...

    Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $435,750 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH...

  • Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate...

    Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $567,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH...

  • Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate...

    Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $420,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department Consumer...

  • Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate...

    Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $486,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH...

  • Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate...

    Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bankwide rate could be based on either direct hours (DLH) or the number of loans processed. The departmental rate would be based on direct labor hours cor Consumer Loans and a dual rate based on direct hours and the number of loans processed for Commerical Loans. The following information was gathered for the upcoming period: Consumer DLH 14,000 Loans...

  • Bone Corpus contingene bak de over det overhead 34.000 The bebedour o 500.000 O $12.500 O...

    Bone Corpus contingene bak de over det overhead 34.000 The bebedour o 500.000 O $12.500 O $230.000 O $130.500 Banc Corp Trust is considering thera barw.de overhead rate or departed departmental rates would be based on direct labor hours for consumer Loans and are based on 1420000 of reco tabern r d ed on eta preco c t h e Department Consumer DLH Loans e 10.000 If Banc Corp. Trust uses a bank wide rate based on the number of...

  • Exercise 17-7 Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small...

    Exercise 17-7 Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for this year follow. (Round "OH rate and cost per unit" answers to 2 decimal places.) Direct labor hours Machine hours Overhead costs Molding 52,000 DLH 30,500 MM $732,000 Trimming 48,000 DLH 3,600 MH...

  • QS 17-5 Computing departmental overhead rates LO P2 Rafner Manufacturing identified the following budgeted data in...

    QS 17-5 Computing departmental overhead rates LO P2 Rafner Manufacturing identified the following budgeted data in its two production departments. Assembly $1,218,700 12,200 DLH 6,200 MH Manufacturing overhead costs Direct labor hours Machine hours Finishing $620,000 20,200 DLH 16,200 MH points (8 03:15:46 Required: What are the company's departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours? Hint The departmental overhead rate for Assembly G...

  • Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead...

    Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X5, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 10,000 dlh 90,000 dlh Machine-hours 100,000 mh 5,000 mh Direct labor cost $ 80,000 $720,000 Manufacturing overhead costs $250,000 $360,000 The accounting records...

  • Exercise 17-5 Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small...

    Exercise 17-5 Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming. before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2017 follow. (Round "OH rate and cost per unit" answers to 2 decimal places.) Direct labor hours Machine hours Overhead costs Molding Trimming 52,800 DLH 48,800 DLH 30,500 MH3 ,600 MH $ 730,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT